{"id":371323,"date":"2022-05-26T07:50:03","date_gmt":"2022-05-26T07:50:03","guid":{"rendered":"https:\/\/reso.co.in\/?p=371323"},"modified":"2022-08-28T12:49:33","modified_gmt":"2022-08-28T12:49:33","slug":"artificial-arbitration-a-budding-way-of-intelligence","status":"publish","type":"post","link":"https:\/\/reso.co.in\/artificial-arbitration-a-budding-way-of-intelligence\/","title":{"rendered":"Artificial Arbitration: a budding way of intelligence"},"content":{"rendered":"
[et_pb_section admin_label=”section”]
\n\t\t\t[et_pb_row admin_label=”row”]
\n\t\t\t\t[et_pb_column type=”4_4″][et_pb_text admin_label=”Text”]<\/p>\n
Whenever we hear the words \u201cdispute\u201d or \u201cargument\u201d, we immediately think of conventional litigation and heated courtrooms discussions. Arguments and disagreements are a frequent and natural part of our lives; the answers, conclusions, and intricacies of such things are what keep us going. However, we all are aware that the Indian courts are packed with cases that have been pending for a long time.\u00a0 To deal with such circumstances, Alternative Dispute Resolution (ADR) can be a useful technique since it settles dispute in a peaceful way with a result that is acceptable by both parties.<\/span>\u00a0<\/span><\/p>\n Alternative Dispute Resolution (ADR) is a concept that may be used to resolve conflicts instead of using traditional techniques. Alternative Dispute Resolution (ADR) is a concept that may be used to resolve conflicts instead of using traditional techniques.\u00a0<\/span>\u00a0<\/span><\/p>\n ADR is a process generally known as the “out-of-court settlement,” and individuals who didn\u2019t want to engage in the complexities of a judicial battle are increasingly selecting it as a feasible alternative. However, with advancements in the area and the law adapting to it more than ever, it has spread its wings to the technological era. Artificial Intelligence (\u201cAI\u201d) is one such futuristic technology that is aiding the legal field like a pro.<\/span>\u00a0<\/span><\/p>\n Artificial Intelligence is the idea that computers can replace humans in various fields of life. Like : Smart Contracts are contractual agreements that are created using computer code instead of traditional written clauses. They are usually linked to an automated trigger.<\/span>\u00a0<\/span><\/p>\n Over the past couple of years, the number of transactions that take place online has increased significantly. This has led to the emergence of various online dispute resolution processes.<\/span>\u00a0<\/span><\/p>\n This essay aims to introduce the various aspects of how AI could be used in the dispute resolution process. There was little systematic development of such systems in the early years. A variety of improvised systems was created. Our essay discusses its integration with ADR, as well as its benefits and drawbacks.<\/span><\/p>\n <\/p>\n ADR, which includes disciplines such as Mediation, Arbitration, and Negotiation, literally means “an alternative to conventional conflicts.” These areas entail professional complexities, making this procedure dependable for the public. The core of this system is the lack of judicial procedures and the use of professional legal representation. The ADR procedure is similar to a family conversation, but there are “no links” in this case, which makes it more credible because it is handled objectively. Its benefit is that it brings customers and professionals together in a close-knit discussion\/argument, where the function of the mediator is critical because it entails analysing the situation.<\/span>\u00a0<\/span><\/p>\n The law is not lagging behind in terms of technological developments. Artificial Intelligence (AI), the idea that computerised systems may replace human cognitive processes and interactions, is gaining popularity in all walks of life, including the legal profession, and particularly in the field of conflict resolution.<\/span>\u00a0<\/span><\/p>\n In layman\u2019s language Artificial Intelligence shows \u201chuman-like\u201d skills which runs on well-tuned algorithms .\u00a0<\/span>\u00a0<\/span><\/p>\n Artificial intelligence (AI) is a technology that can imitate and replace human behaviour. Online dispute resolution provides for the settlement of disputes through internet-based procedures. It allows for virtual conversation between persons that are separated via distance. These interactions take place between businesses and customers. Due to social distancing conventions and distant work rules, online dispute resolution has gained popularity in the wake of the recent COVID-19 epidemic. The Supreme Court of India recently issued a suo moto ruling outlining principles for how courts should operate online.<\/span><\/p>\n <\/p>\n By classifying and analysing the existing information, Artificial Intelligence enhances the human\u2019s efforts. It enables the combination of human and computer-based knowledge, management skills. Decision-making tools increase the performance of individuals, whereas decision-making tools automate the process and need little to no intervention. The system may be taught to make judgments based on rules, situations, and previous experience. Machine learning is what drives experience-based learning, and it happens automatically based on data mined by the software.<\/span>\u00a0<\/span><\/p>\n The following are some of the tools that have been utilised to build intelligent negotiating support systems:<\/span>\u00a0<\/span><\/p>\n <\/p>\n The suggested three-step approach is based on a predetermined order.<\/span>\u00a0<\/span><\/p>\n Finally, if the outcome of step three is unacceptable to the parties, the tool should allow them to return to step two and repeat the process recursively until the disagreement is resolved or a stalemate is reached. A stalemate happens when there is no progress from step two to step three or vice versa. Even if there is a deadlock, appropriate types of Alternative Dispute Resolution (such as blind bidding or arbitration) can be utilised on a smaller group of concerns.<\/span><\/p>\n <\/p>\n Could artificial intelligence help process claims more quickly and even make decisions on cases? Would claimants be willing to have their claims decided by computers?<\/span>\u00a0<\/span><\/p>\n There is an abundance of raw data available on the planet. For example, we could train an AI to read a large number of court decisions. Many companies are also attempting to use AI to make sense of court proceedings. Finding ways for AI to process this data is the issue. It is now quite tough to accomplish. The law has a lot of structure, but it’s not the type of organisation that makes it easy for an algorithm to learn and recognise patterns and rules. Giving an AI Lexis-Nexis access and then expecting it to serve on the Supreme Court is still a fair distance\u202f<\/span>\u00a0<\/span><\/p>\n AI using software algorithms (i.e., us, the humans) now tackles complex activities that were previously done by non-artificial intelligences. Humans have their own methods for analysing problems and coming up with solutions. AI must also be able to comprehend issues and design solutions in order to produce results that are comparable to or better than those produced by humans. However, algorithmic intelligence does not approach these goals in the same way that human intelligence does.<\/span>\u00a0<\/span><\/p>\n The opposing idea is that, as AI gets more integrated into our daily lives \u2013 to the point where we allow it to drive us and our families about in self-driving cars \u2013 we will feel perfectly comfortable in having the algorithm decide our cases for us.<\/span>\u00a0<\/span><\/p>\n We need to develop data sets if we want to train AIs to make better decisions. Because so many cases are now determined on ODR systems, one duty AIs could take on in the near future is to assist in the classification of these data sets. <\/span>New cases would be negotiated, mediated, and arbitrated by humans, with AIs reviewing and structuring the evidence generated in real tim<\/span>e. This would give us a leg up on the competition in terms of assembling a huge corpus to train future AI systems.<\/span>\u00a0<\/span><\/p>\n An AI must concentrate on examples that are similar in nature. It’s quite tough for an algorithm to gather a database of a variety of cases (such as, workplace, traffic, divorce) and then deduce rules that could make sense of any new scenario. Specialization in specific case types (for instance \u2013, traffic) is critical for rule correctness. General decision-making systems (people) must still be able to classify each new situation and then apply the rules that relate to that particular case type.<\/span><\/p>\n Technology has established itself in the lives of people in today’s society. Artificial Intelligence (AI) is one such technology that has aided humanity in growing in diff<\/span>erent sectors<\/span>, making a variety of activities simple. Life has become both simpler and more complicated because of such technologies.<\/span><\/strong><\/p>\n <\/p>\n AI is transforming the world for the better, from our smartphones’ voice-based personal assistants to drones that are assisting Indian farmers in reaping a better harvest. AI can be advantageous to the legal field as it will reduce the load off the people working to resolve the case.<\/span>\u00a0<\/span><\/p>\n Every good technology can also be used to accomplish evil purposes. In this regard AI is no exception. <\/span>AI has the potential to negatively affect the purpose of the Arbitration.<\/span>\u00a0<\/span><\/p>\n <\/p>\n Online Dispute Resolution is becoming more popular in India. The Information Technology Act, 2000 was passed in order to officially recognise e-commerce and e-governance systems. Alternative Dispute Resolution Processes are legally recognised in India under Section 89<\/span>1<\/span> of the Code of Civil Procedure, 1908.<\/span>\u00a0<\/span><\/p>\n The CJI stated during an International Conference on \u2018Arbitration in the Era of Globalisation,’<\/span>2<\/span> hosted by the Indian Council of Arbitration and FICCI, that <\/span>\u201cAs we conceptualize international arbitration in a globalized era, we must also be cognizant of the synergistic opportunities available for international arbitration through the utilization of disruptive technologies.\u201d<\/span>\u00a0<\/span><\/p>\n This demonstrates that India is searching for ways to incorporate artificial intelligence into its arbitration legislation. In this line, some regulatory adjustments have been recommended in India to accommodate artificial intelligence in its early phases. As a consequence of India’s commitment on establishing institutional arbitration, the proposed modification to the Arbitration and Conciliation Act now allows the Supreme Court and the High Courts to designate AI (for domestic arbitration). In the absence of an agreed-upon arbitration procedure, the AI shall designate arbitrator\/s, according to the bill.<\/span>\u00a0<\/span><\/p>\n However before the implementation of Artificial Intelligence, there will be many amendments required in Information Technology Act, 2000<\/span>3<\/span> as despite the fact that authorising the use of Artificial Intelligence is permissible, there are no laws governing its usage. There will be major influence in Intellectual Property Rights as well. Algorithms are currently not patentable under India’s Patent Act, section 3 (k)<\/span>4<\/span>. Copyright for such algorithms must be handled in accordance with current legislation.<\/span>\u00a0<\/span><\/p>\n The Supreme Court of India affirmed a decision that barred an individual or entity with a vested interest in the arbitration from serving as the sole arbitrator. Under Indian law, the lone arbitrator’s independence is a legal necessity for every arbitration. India also lacks the necessary technology and infrastructure for all Indians to have access to online dispute resolution. Only 36% of Indians have internet and associated services.<\/span><\/p>\n <\/p>\n Due to the COVID-19 issue, the existing pattern of dispute resolution has altered, and the internet platform has become the only option for individuals to address their problems. Because there are no judicial processes, all issues are addressed online through multiple platforms using video conferencing.<\/span>\u00a0<\/span><\/p>\n <\/p>\n Alternative dispute resolution techniques are considered versatile, economical, quick, and less formalistic than court-based adjudication, making them a potential alternative. Aside from the court system, the parties can choose from a variety of alternate conflict resolution solutions for uncomplicated disagreements. India is making progress in the area of judicial equality. The ADR structure acts as a stepping-stone for both parties as they work their way up the court system. The ADR movement has to move forward more quickly. This would considerably lessen the pressure on the courts, in addition to providing rapid justice at no cost.<\/span> They will achieve the goal of giving social justice to the conflicting parties if they are adequately executed.<\/span>\u00a0<\/span><\/p>\n While the idea of computers answering questions does not sound unusual, the thought of them doing so while building a relationship with us does.<\/span>\u00a0<\/span><\/p>\n Artificial intelligence will play a major part in international arbitration in the near future, whether we like it or not. The stakes are immense, and the benefits of artificial intelligence are far too great to ignore. AI has many potential benefits for international arbitration, but as members of the arbitration community, we also need to grasp the risks of AI, what they are, and how they might affect international arbitration in non-obvious ways.<\/span>\u00a0<\/span><\/p>\n The growing tendency of people seeking out-of-court settlements for their disputes stimulates the incorporation of AI in arbitration. The basic goal of arbitration is to reach a resolution in a shorter amount of time while avoiding the complexities of the courtroom. Arbitration is poised to lead the way in terms of technological and procedural advancements. It is the role of arbitral institutions, tribunals, and practitioners to do so, particularly if such innovations can lower costs and improve efficiency.<\/span>\u00a0<\/span><\/p>\n There is yet no legislation that addresses the use of an AI-enabled system at various levels of arbitration. If AI-enabled technologies are used in arbitration procedures, some laws will be required to ensure that the parties are not endangered. This is a difficult area where AI’s strengths must be exploited without endangering arbitration’s essential values.<\/span><\/p>\n <\/p>\nA package of ADR with AI:<\/span><\/b>\u00a0<\/span><\/h2>\n
How AI work?<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
\n
\n
\n
The Lodder-Zeleznikow explains Online Dispute Resolution Model in Three Steps:<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
\n
\n
Will claimant want to work according to computer\u2019s advice?<\/span><\/b>\u00a0<\/span><\/h2>\n
Excellences of AI:<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
<\/h2>\n
Imperfections of AI:<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
Indian legal scenario for AI in Alternate Dispute Solutions:<\/span><\/b>\u00a0<\/span><\/h2>\n
Indian Platforms of ODR(Online Dispute Resolution):<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
\n
Conclusion<\/span><\/b>\u00a0<\/span><\/h2>\n
References:<\/span><\/b>\u00a0<\/span><\/h2>\n
\n
\n